Amount received by the NGO from Central and/or State Government towards some charitable activities is not exempt from GST.

Amount received by the NGO from Central and/or State Government towards some charitable activities is not exempt from GST.

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Amount received by the NGO from Central and/or State Government towards some charitable activities is not exempt from GST.

The Maharashtra Bench of AAR in the case of Jaishankar Gramin VA Adivasi Vikas sanstha vide order dated 10th November,2021 has held that the amount received by the said NGO from Central and/or State Government towards some charitable activities which are not exempted from the purview of GST.
It has held that  as per the relevant notification are liable for GST @ 18% since the services of Advertising are given when the name plate of the Donor is affixed in lieu of the donation.
The  AAR / Judgement is not very clear as far as the factsof the present case is concerned  but the ration spelt out  may open Pandora’s box for the charitable entities.
The copy of the order is as under :
Amount received by the NGO from Central and/or State Government towards some charitable activities is not exempt from GST.

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